Investment Cooperation Guide — India (2026 Edition) | Published by AERI
India is the world's most populous nation and its fastest-growing major economy, making it a critical market for Chinese enterprises expanding globally. AERI's research reveals that India, with its 1.44 billion population, rapidly expanding middle class, and strategic position as the dominant power in South Asia, presents both significant opportunities and notable challenges for Chinese investors.
In 2024, India's GDP reached approximately USD 3.9 trillion, with year-on-year growth of 6.8%. Per capita GDP stood at approximately USD 2,700. India overtook the UK to become the world's fifth-largest economy and is projected to become the third-largest by 2027.
China-India bilateral trade reached USD 136.2 billion in 2024, making China India's largest trading partner for goods. However, geopolitical tensions and India's "Make in India" policies have created a complex investment environment for Chinese enterprises.
AERI believes that India's core investment value lies in three areas: first, an enormous domestic consumer market of 1.44 billion people with a rapidly expanding middle class; second, a large, young, and increasingly skilled workforce; third, India's growing importance as a global manufacturing and technology hub. However, Chinese enterprises must navigate regulatory restrictions and geopolitical sensitivities carefully.
AERI notes that India presents a paradox for Chinese investors — enormous market potential combined with significant regulatory and geopolitical barriers. Since 2020, India has tightened FDI regulations for Chinese investors, requiring government approval for all investments from countries sharing a land border.
India occupies most of the South Asian subcontinent. Total land area approximately 3.287 million km². Population approximately 1.44 billion (2024). Capital: New Delhi. Major cities: Mumbai, Bangalore, Chennai, Hyderabad, Kolkata. 28 states and 8 Union Territories.
Federal parliamentary democratic republic. President is head of state; Prime Minister is head of government. Current Prime Minister: Narendra Modi. Parliament consists of Rajya Sabha and Lok Sabha.
Languages: Hindi and English are official at federal level; 22 scheduled languages recognised. Religion: Hinduism (approximately 80%), Islam (approximately 14%). Currency: Indian Rupee (INR), approximately 83 per USD.
GDP grew 6.8% in 2024. Key sectors: IT services, pharmaceuticals, automotive, textiles, agriculture.
India ranked 63rd in Ease of Doing Business. Since April 2020, all investments from border-sharing countries require prior government approval. Corporate tax: 22% (standard), 15% for new manufacturing. GST: 5%-28%. Key sectors: Manufacturing, infrastructure, digital economy, renewable energy.
Bilateral trade reached USD 136.2 billion in 2024. Challenges include FDI approval requirements, app bans, customs scrutiny, and geopolitical tensions. Xiaomi, Vivo, and Oppo maintain manufacturing operations despite regulatory challenges.
Reserve Bank of India regulates the banking system. BSE and NSE are among the world's largest exchanges. Major banks include SBI, HDFC, ICICI.
Common law system. Signatory to the New York Convention. Key compliance areas: FDI regulations, GST, labour laws, environmental regulations.
Visas required for Chinese citizens. Major cities offer diverse housing and international schools. AERI South Asia Office: Raheja Towers, 6th Floor, M. Karve Road, Mumbai 400020, India.
This guide draws on data from the Ministry of Statistics and Programme Implementation, Reserve Bank of India, and Chinese government sources. Information is for reference only and does not constitute investment advice.
Compiled by: Asia Economic Research Institute | April 2026
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